Source: ForexYard
As the CHF/JPY fails to reach the 89.50 level, various indication for a bearish correction suggest that the bullish momentum might have reached its end.
• The chart below is the CHF/JPY 4-hour chart by ForexYard.
• The technical indicators used are the Bollinger Bands, the Slow Stochastic, the MACDOsMA and the Relative Strength Index (RSI). The Fibonacci Retracement lines are used as well.
• A continuous of bearish crosses on the Slow Stochastic suggests that the bullish trend is losing steam.
• A bearish cross on the MACD indicates that a bearish correction is about to appear on the chart.
• The RSI has picked at the over-bought zone and has now dropped below the 70 line, stating that a bearish reversal should be in place.
• The Fibonacci Retracement lines show that the pair failed to reach the 89.50 resistant level, and is now range-trading around the 89.00 level.
• It seems that if the pair will drop below the 88.80 level (i.e. drop below the 76.4% line), it might validate the bearish correction, with the potential to reach the 88.00 level).
Forex Market Analysis provided by ForexYard.
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